BOJ Hikes Interest Rates to 30-Year High Amid Inflation Fears

The Bank of Japan has hiked its key interest rate to 1.25%, marking a more than 30-year high in an effort to combat inflation.

The decision, which was expected by markets following recent tightening from the European Central Bank and US Federal Reserve, was made by a 7-2 majority vote.

The Bank of Japan cited surging energy prices and a weak yen as key drivers behind its move to raise interest rates further.

With oil prices continuing to climb due to the ongoing Middle East crisis, officials are under pressure to lift borrowing costs to keep inflation in check.